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tvm (version 0.1)

cft: Calculates the Total Financial Cost (CFT)

Description

This is the IRR of the loan's cashflow, after adding all the extra costs

Usage

cft(amt, maturity, rate, up_fee = 0, per_fee = 0)

Arguments

amt
The amount of the loan
maturity
The maturity of the loan
rate
The loan rate, in effective rate
up_fee
The fee that the loan taker pays upfront
per_fee
The fee that the loan payer pays every period

Details

It is assumed that the loan has monthly payments The CFT is returned as an effective rate of periodicty equal to that of the maturity and the rate The interest is calculated over amt + fee